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Islamic Law of Transaction - Definitions of Sale According to Islamic Scholars
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
Case Scenario: Valid and Invalid Sales
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Both parties agree to exchange ownership, and Bilal takes possession of the bicycle after payment. This is a valid sale according to Islamic law because there is lawful ownership, benefit, transfer of ownership, and delivery of the item.
On the other hand, if Ahmad exchanges one RM10 note for another identical RM10 note without any added value or benefit, it is not regarded as a proper sale because there is no meaningful exchange. Likewise, selling worthless or prohibited items, such as a dead animal, would also be invalid in Islamic law because such items are not recognised as valuable property.
In Islamic law, a sale (bayʿ) means exchanging one item for another. The Arabic word bayʿ is used for both buying and selling, as mentioned in the Qur’an in verses [12:20] and [2:102].
The word bayʿ comes from the Arabic word bāʿ, meaning “arm,” because people stretch out their arms to give or receive items during a transaction. Another explanation is that people used to shake hands after completing a deal. Because of this, another Arabic word for a sale agreement is ṣafqa, which literally means “a handshake.”
According to the Hanafi School jurists, a sale is the exchange of a lawful and owned item (māl) for another item in a beneficial and specific manner. This definition excludes exchanges that bring no real benefit, such as swapping one identical coin for another identical coin. It also excludes worthless or prohibited items, such as dead animals or dust, because they are not considered valuable in Islamic law.
Al-Nawawi defined a sale as the exchange of one owned item for another together with the transfer of ownership from one person to another.
Similarly, Ibn Qudamah defined a sale as an exchange that not only transfers ownership, but also allows the new owner to take possession of the item.
Case Scenario: Valid and Invalid Sales
Ahmad sells his bicycle to Bilal for RM500. Ahmad legally owns the bicycle, while Bilal owns the money. Both parties agree to exchange ownership, and Bilal takes possession of the bicycle after payment. This is a valid sale according to Islamic law because there is lawful ownership, benefit, transfer of ownership, and delivery of the item.
On the other hand, if Ahmad exchanges one RM10 note for another identical RM10 note without any added value or benefit, it is not regarded as a proper sale because there is no meaningful exchange. Likewise, selling worthless or prohibited items, such as a dead animal, would also be invalid in Islamic law because such items are not recognised as valuable property.
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